A debt consolidation loan and wise financial planning could help you recover from debt. Here, DebtConsolidation.co.uk shares some tips for writing off credit card debts.
The savings rate in the UK is at its lowest ever, with people struggling to make ends meet, let alone saving money for an emergency fund. The tiniest financial change or setback could therefore cause a consumer to use their credit card and spend money they don't have, becoming immersed in debt.
However, there are ways of preventing such an unfortunate outcome; namely, good financial planning. In this guide, DebtConsolidation.co.uk offers advice on how consumers can recover from credit card debts.
The first step is a monthly budget, because being financially stable depends on getting to grips with your spending. The faster your debt is paid off, the sooner you can plan your future, so it might help to get a part time job to earn extra money. Anything you earn, or save, should be put towards paying off your credit card debt.
Next, you can try negotiating with your bank or credit card company. What most people don't realise is that many credit card companies are in fact willing to offer you lower interest rates, monthly payments, or even a lower percentage of what you owe. It is their money after all, so they are often keen to help customers pay off their balance.
If you need help, a qualified credit counsellor can negotiate on your behalf. Their experience in the field will help negotiate excellent repayment terms that suit your individual situation.
Finally, a debt consolidation loan will make managing your money easier, leaving you with a single monthly repayment. Secured debt loans are tailor-made for those in financial difficulty, offering lower interest than unsecured debts and helping you rebuild your credit rating, all backed up by expert advice. But of course, it is up to you to take the first step towards digging yourself out of debt.